eMAG (brand value up 29% to €1,027 million) has overtaken Dacia (brand value down 28% to €815 million) to become the most valuable Romanian brand according to a new analysis by Brand Finance. The e-commerce brand rode a favourable wave as consumers’ buying patterns switched to online during pandemic, which combined with a drop in revenues for Dacia facilitated the historic switch at the top of the ranking, according to WebWire.com.
Every year, leading brand valuation consultancy Brand Finance puts 5,000 of the world’s biggest brands to the test, and publishes around 100 reports, ranking brands across all sectors and countries. The top 50 most valuable and strongest brands in Romania are included in the annual Brand Finance Romania 50 ranking.
eMAG’s brand value continues to increase due to forecast increased revenues as it continues to transform to meet changing consumer demands. As consumers become increasingly familiar with online shopping across its key markets of Romania, Hungary and Bulgaria, eMAG’s brand has potential to achieve further growth in the hotly contested and continually changing online retailing sector. eMAG has the potential to benefit from both macro economic changes as consumers spend more online, and micro changes as it delivers on its brand purpose to its key stakeholders.
Banca Transilvania is strongest Romanian brand, now rated AAA+
In addition to calculating brand value, Brand Finance also determines the relative strength of brands through a balanced scorecard of metrics evaluating marketing investment, stakeholder equity, and business performance. Compliant with ISO 20671, Brand Finance’s assessment of stakeholder equity incorporates original market research data from over 100,000 respondents in more than 35 countries and across nearly 30 sectors. By this measure, Banca Transilvania (brand value up 6% to €397 million) is the strongest Romanian brand, achieving an elite AAA+ brand ranking with a brand strength rating of 90.0. The banking brand is now amongst the top ten strongest banks globally, and the brand is the 5th most valuable Romanian brand overall.
Mihai Bogdan, Managing Director, Brand Finance Romania, commented: “Until very recently, Dacia seemed to be glued forever to the first position in the Romanian ranking. The fast ascent of eMag to the top marks a symbolic ‘torch passing’ from an old and well-known brand to a ‘new economy’ brand invented less than 30 years ago. Looking forward, it would be healthy development for Romania if more technology and ‘new economy’ brands challenged the top 50 ranking.”
Dedeman (up 24%) and Altex (up 31%) lead Romanian retail surge
Dedeman (brand value up 24% to €504 million) and Altex (brand value up 31% to €123 million), alongside eMag, represented very fast brand value growth for Romanian retail brands. Despite operating mainly in brick-and-mortar DIY stores –a sector severely hit by the pandemic restrictions – Dedeman is bouncing back and it remains the most valuable brand held entirely by Romanian shareholders, defending the 3rd position in the ranking. These brands are well placed to capture a re-alignment of the Romanian economy as consumers demand more goods and less services in the wake of the pandemic.
Overall, the combined value of Romania’s top 50 brands is up 5.6% from previous year, in line with the whole Romanian economy’s rebound of 5.9%.
The research underlying this sixth annual report by Brand Finance on the most valuable and strongest Romanian brands was completed before the Russian invasion in the neighbouring Ukraine, and as such it marked a rebound from the uncertainty induced by the global Covid pandemic; while the Romanian economy has not had significant connections with Russia and Ukraine, it is expected that further research would measure the potential disruption from the war shockwaves
Over 60% of brands and brand value in the top 50 ranking have been created by the private sector over the past 30 years
New brands – created and developed by entrepreneurs and private companies over the past 30 years – account for over 60% of the Brand Finance Romania 50 2022 – both in number of brands and in brand value.
The high value ranking list has recorded a low churn rate over the past years, with only a couple of brands moving in and out of top 50 every year. This year has seen only two new entrants in the top 50: BILKA (brand value up 56% to €20 million) re-entered the Top 50 ranking after missing in 2021, and Ciuc (brand value up 29% to €18 million).
The two brands sliding out of the ranking in 2022 are COCORICO and Blue Air which is now facing insolvency following pandemic restrictions.
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